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On admission 25 percent of a fixed asset of ₹200000 is considered obsolete and the remaining value increases by 10 percent. What is the net effect?

Answer and explanation

Correct answer: ₹35000 loss

Obsolete part is a loss of ₹50000 and 10 percent increase on remaining ₹150000 is a gain of ₹15000. Net loss is ₹35000.

Related tags

Fixed AssetObsoleteNet LossAsset RevaluationReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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